① Employment & Labor policy focusing on jobs
Government is concentrating on job creation in order to achieve its ‘70% Employment Rate.’ Improvements in the labor market are taking place through revampment of SMEs’ employment conditions, a surge in part-time jobs, expansion of independent workers’ industrial accident compensation insurance, and reformation of customary practices in the labor market.
[Table 1] The Government’s Four Employment & Labor Policies
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① Strengthen support for youth employment
② Prevent career interruption of women
③ Strengthen employment & welfare services
④ Construct a new employment & labor system
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In addition, the government is focusing on the legislation of compulsory retirement at age 60, and the Supreme Court ruling on the scope of ordinary wage in the workplace. It also is working to transform employment programs from seniority-based wage systems to those that are performance-based. Regarding ordinary wage, the government is planning to focus on resolving disputes related to ordinary wage with its ‘Guidelines for Labor & Management Concerning Ordinary Wage’ (23 January), and will alleviate conflict through amendment of the relevant laws.
[Table 2] Major Objectives for ‘Guidelines for Labor & Management Concerning Ordinary Wage’
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① Guide labor and management communications in accordance with precedents which emphasize the good-faith principle
② Compliance with modification procedures of the Rules of Employment
③ Labor and management agreement on the timing of application of the good-faith principle
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In addition, the government is inducing companies to modify their wage schemes from seniority-based wage systems to those that are performance-based through its ‘Manual on Wage System Restructuring’ (20 March).
[Table 3] Major Items in the Manual on Wage System Restructuring
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① Simplification of wage items on the basis of base pay
② Reduction of the importance of the seniority-based system (adoption of a job-based, skill-based system)
③ Expansion of performance-based bonuses or allowances
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During the 2nd half of the year, the government is planning to secure visible results from its employment & labor policy through an employment-type disclosure system, legislation of reduced working hours, and labor inspections. Towards this, the Ministry of Employment & Labor is expected to perform labor inspections regarding affirmative action for non-regular workers in 328 companies with a high proportion of temporary workers.
[Table 4] Direction of the Government’s Major Employment & Labor Policies in the Second Half of the Year
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Main Items
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Job Creation
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• Establish and conclude an agreement on the guidelines for converting non-regular workers to regular status in the private sector (3rd quarter)
• Examine the results of job expansion, such as converting non-regular workers to regular status in the public sector (3rd quarter)
• Disclose the list of public institutions which did not hire youths and announce the amount of youth employment in public institutions (2015)
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Reduction of Working Hours
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• Amendments to the Labor Standards Act (such as including holiday work in overtime working hours) (2nd half of the year)
• Apply a 40-hour work week in workplaces with 4 workers or fewer (2015)
• Conclude agreements on the reduction of long working hours by industry and distribute manuals to assist in the reduction of working hours (2015)
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Anti- Discrimination
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• Enforce an employment-type disclosure system (to be announced in July)
• Legislate the In-house Subcontracted Work Act (4th quarter)
• Perform research on the actual conditions of using in-house subcontracted work guideline, perform education in workplace on the guideline, make agreements to use the guideline in workplace (3rd quarter)
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Occupational Safety
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• Strengthen the penalty for primary contractors, reinforce management of chemical substances (3rd quarter)
• Amend the Industrial Accident Compensation Insurance Act and enforcement decree which apply to independent workers (2nd half of the year)
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Due to the Sewol ferry disaster, labor inspection of occupational safety is going to increase. The government’s labor inspections will presumably focus on workplaces where fires, explosions, and gas leaks have occurred, including construction sites with the potential for accidents.